Chevron (CVX, $120.44) to buy Anadarko Petroleum (APC, $62.35) to strengthen its position in the shale business
American multinational energy giant Chevron is all set to buy Anadarko Petroleum Corp. in a $33 billion cash and stock deal.
The deal is not just in line with the company’s strategy to expand its shale-drilling ambitions and places it just behind Exxon Mobil Corp. as one of the world’s largest publicly traded producers of oil and gas. But, it also helps the second biggest U.S. energy company to expand operations in U.S. shale oil and gas production, offshore drilling and liquefied natural gas exports business.
According to the terms of the deal, Anadarko’s shares has been valued at $65 per share – a 37% premium to its Thursday close and Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share. Further, Chevron will adopt $15 billion of Anadarko’s debt.
With this deal Chevron not only gets relatively cheap large-scale production to take their Permian position a level up just behind Exxon (XOM), but it also gives them access to West and East African reserves. This in turn can help Chevron roll their Australian LNG development capability into Mozambique.
Representing the 11th biggest deal for an energy and power company, it’s expected to create synergies worth $1 billion for Chevron.
Chevron had hit 16.2 billion barrels of oil equivalent (BOE) in 2018, while Anadarko clocked a production count of 4 billion BOE from the Permian region in western Texas and eastern New Mexico in 2018.
CVX in upward trend: price expected to rise as it breaks its lower Bollinger Band on December 16, 2024
CVX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where CVX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for CVX moved above the 200-day moving average on November 26, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CVX advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 279 cases where CVX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 04, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CVX as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CVX turned negative on December 03, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
CVX moved below its 50-day moving average on December 13, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CVX crossed bearishly below the 50-day moving average on December 18, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CVX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CVX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.836) is normal, around the industry mean (1.194). P/E Ratio (14.004) is within average values for comparable stocks, (24.146). Projected Growth (PEG Ratio) (4.497) is also within normal values, averaging (4.841). Dividend Yield (0.039) settles around the average of (0.111) among similar stocks. P/S Ratio (1.519) is also within normal values, averaging (0.975).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company which explores and refines oil and natural gas
Industry IntegratedOil